VCs cool on funding large green initiatives

As is often the case with VC investment themes, there is a period of infatuation that leads to over-investment in hot sectors followed by a considerable fall off in ardor as reality sets in. A recent piece from Reuters highlights another example of this investment community behavior:

Having placed big bets on capital-intensive industries like solar and ethanol just as the financial crisis quashed interest in risky new technologies, early-stage investors these days have a limited appetite for start-ups that need large amounts of cash to bring their products to market.